The Weekly Market Update
News & Insights
w/c 9th March: Geopolitics Rules
GBP
The British Pound strengthened last week, supported by Middle East tensions that drove sharp volatility in energy markets and lifted oil and gas prices. Rising energy costs prompted investors to scale back expectations for near-term Bank of England rate cuts, boosting Sterling. Although mixed UK services PMI data and labour market concerns briefly tempered momentum, the currency maintained an upward bias as markets reassessed inflation risks.
EUR
The Euro faced pressure last week amid weaker German retail sales and concerns that surging energy prices could weigh on the Eurozone’s fragile economy. Escalating Middle East tensions and trade frictions with the United States further dented sentiment. While markets also adjusted interest rate expectations, the region’s greater exposure to rising energy costs left the currency vulnerable to continued geopolitical uncertainty.
USD
The U.S. Dollar has drawn support from safe-haven demand as the Iran conflict and surging energy prices unsettle markets. Investors are weighing the United States’ relative insulation from energy shocks against global growth risks. Oil-driven inflation concerns are also shifting interest-rate expectations, while labour and business data guide sentiment. If energy disruption persists, tighter conditions and inflation uncertainty could keep demand for the dollar firm.
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